Asia-Pacific markets relinquished earlier gains to predominantly trade lower on Thursday, in the wake of the Federal Reserve’s third rate cut of the year. The U.S. central bank has lowered the Federal Funds rate by 25 basis points to a range of 3.5%-3.75% and indicated that it has concluded its easing measures for the time being. Fed Chair Jerome Powell stated during his post-meeting news conference that the reduction places the Fed in a favorable position regarding interest rates. “We are well-positioned to wait and see how the economy evolves,” Powell stated, emphasizing that President Donald Trump’s tariffs had contributed to inflationary pressures. The U.S. dollar index declined to a low of 98.54 on Thursday, representing its weakest point since October 21.

Japan’s Nikkei 225 commenced the trading session on a positive note; however, it ultimately declined by 0.9%, concluding at 50,148.82. The Topix experienced a decline of 0.94%, settling at 3,357.24. South Korea’s Kospi reversed course, declining by 0.59% to close at 4,110.6, which signifies a third consecutive day of losses. The small-cap Kosdaq concluded slightly under the flatline, settling at 934.64. The Hong Kong Hang Seng index experienced a slight decline in its final trading hour, while mainland China’s CSI 300 recorded a more significant loss of 0.86%, concluding at 4,552.18, marking its third consecutive day of losses. Shares of ZTE Corp in Shenzhen experienced a decline of 10% following a report from Reuters indicating that the Chinese telecom equipment manufacturer could be required to pay over $1 billion to the U.S. government to resolve allegations of foreign bribery.

Australia’s S&P/ASX 200 experienced a modest increase of 0.15%, concluding the trading session at 8,592. Alongside the rate decision on Wednesday, the Federal Reserve disclosed its plan to recommence the purchase of $40 billion in Treasury bills, starting on Friday. Short-term Treasury yields experienced a decline as a consequence. The central bank also addressed the weak labor market in its statement, eliminating the phrase that it “remained low.” This indicates a transition in focus towards economic support, rather than prioritizing inflation concerns.

Overnight in the U.S., the Dow Jones Industrial Average experienced a notable increase on Wednesday, rising by 1.1% following the Federal Reserve’s decision. Meanwhile, the S&P 500 saw an advancement of 0.7%, and the Nasdaq Composite recorded a gain of 0.3%.